Payrise takes OH's income over £50k

FBaby

I did sympathise to start with but then 50k with no childcare, no mortgage and some extra revenue isn't bad at all. Very different to the example princessdon gave.

fawd1

I'm sorry if this sounds harsh, but I really struggle to see how 57 pounds per month can possibly be a problem if you have no mortgage, no childcare costs, and extra income from your parents. You must be getting in the region of 2.5-3k PER MONTH!!! to feed, clothe and keep 6 people. Do you eat only caviar and champagne? Are you kidding that you need 57 pounds per month extra? What on earth for?

EvieSaver

Can I just point out again that you will not be worse off. You will lose about £17.60 for every £100 over £50k you earn. This means you will still receive a pay rise, just not quite as much as before the CB changes.

For earnings between £50k - £60k there will be 40% tax, 2% NI and (in the case of 2 children) 17.6% (ish) CB deductions. Totalling almost 60% being deducted. You will be left with about 40% of earnings from this bracket of income.

You do not loose all the child benefit until you earn £60k.

Your husband could put the pay rise into a pension which could be worth more in the future but if you need the money now then don't. Decide what suits you best.

PippaGirl_2

Dunroamin wrote: »

I'm afraid that your idea that adopters should be no worst off after adoption is quite unrealistic as this would mean that a council might have to pay an adoption allowance of £50K plus for many years if a higher earner wanted to adopt.

I have three close friends who have adopted and close friends who are social workers who work within adoption.

Of the three friends

One previously fostered her two adopted children and she receives the adoption allowance that matches what she used to receive in fostering allowances and skills fees, so she gets over £20,000 a year in adoption allowance. Now they are adopted she also qualifies for child tax credits and child benefit and DLA for one of them. DLA double the CTC for that child so she receives almost £30,000 for her two adopted children. She plans to also foster once her year is up following the adoption.

Friend two previously fostered her two adopted children and she also receives an adoption allowance that matched her fostering allowance and skills fees, she adopted through a different LA to friend one. She also receives over £20,000 in adoption allowance plus all the other bits add up to more as both her children are currently on DLA. So she receives over £30,000 for her two.

Friend three worked full time before adopting two children. Each time she took 6 months paid statutory adoption leave and then went back to work. She does not receive an adoption allowance.

You say an agency would need to pay £50,000 if someone was in a well paid job and that isn't the case because they do not usually expect someone to give up their job. If there was someone wanting to adopt who would need to give up their job to care for a child, say due to severe disability or behavioural issues, and the recompense would be that much due to their previous wage I doubt the agency would choose that parent and would choose another.

I am not doubting what you say is true, that you were not offered your fostering allowance as an adoption allowance, your LA obviously has different criteria, but what a shame. And their stance isn't the national norm, I'm unsure of what is norm nationally as I only know what is norm to my two LA's here, it would be interesting to know.

PippaGirl_2

Dunroamin, it has occured to me that the difference between my friends and you may be that it wasn't your foster children who you were planning to adopt? If so, yes even my two LA's would not offer an adoption allowance. They only do that here to facilitate and maintain a good happy placement where the children are thriving into a permanent one.

Face1992

I hadn't realised just how much money there is to be made from fostering and adoption. Poor kids.

JimmyTheWig

EvieSaver wrote: »

Can I just point out again that you will not be worse off. You will lose about £17.60 for every £100 over £50k you earn. This means you will still receive a pay rise, just not quite as much as before the CB changes.

For earnings between £50k - £60k there will be 40% tax, 2% NI and (in the case of 2 children) 17.6% (ish) CB deductions. Totalling almost 60% being deducted. You will be left with about 40% of earnings from this bracket of income.

You do not loose all the child benefit until you earn £60k.

Your husband could put the pay rise into a pension which could be worth more in the future but if you need the money now then don't. Decide what suits you best.

This is the relevant bit for the OP.
Don't refuse the pay rise.
Pay into pensions to bring taxable income down to £50k if you can afford to. But with two children you won't be worse off after a payrise. You'd need 5 children (from memory) for a payrise to make you worse off.

PippaGirl_2

Face1992 wrote: »

I hadn't realised just how much money there is to be made from fostering and adoption. Poor kids.

Why poor kids?

shop-to-drop

If he already pays into a pension and he has only just gone over 50k he will be fine. If he doesn't already pay into a pension, he should take this opportunity to sort one out.

Face1992

PippaGirl wrote: »

Why poor kids?

When they've grown up they will look back and think that the people looking after them were doing it for nothing more than the money.